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Chrysler and Fiat CEO Sergio Marchionne today confirmed Chrysler’s plans to hire 1,250 workers and invest $240 million at three Michigan plants so it can ramp up production of its engines and pickups.

“Today is another important milestone in living up to the commitment we made more than three and a half years ago to our employees, this city, this region and our country to transform this company,” Marchionne said in a statement. "Together, and with the support of our UAW partners, we are committed to building something that will have a long-lasting, direct impact on this community."

Marchionne also said it is proof that the federal government’s decision to lend Chrysler money in 2009 as it emerged from Chapter 11 bankruptcy was a good decision.

“Those who still doubt that we would use the second chance taxpayers granted to us to build something better and long lasting…only have to come here and see for themselves how seriously we have taken our responsibility,” Marchionne said today at Chrysler’s engine plant in Detroit.

All of the jobs announced today will be new jobs because Chrysler doesn’t have any workers who are laid off, the company said.

The investments, first reported by the Free Press, include:

• $198 million at Chrysler’s Mack Avenue Engine I plant where Chrysler will add about 250 workers to build its V6 Pentastar engine.

• $40 million at Chrysler’s Trenton North engine plant to build Pentastar and Tigershark four-cylinder engines.

• The addition of a third crew at Warren Truck in Warren to build more Ram 1500 pickups.

With this announcement, Chrysler’s investments at it U.S. plants since it emerged from Chapter 11 bankruptcy in 2009 now tops $4.75 billion. The company also has added nearly 6,000 hourly jobs in the U.S.

After Chrysler idled the 60-year-old Mack Avenue plant in 2011, the company said it would reopen and hire 268 workers to make components for the Pentastar V6 engine.

Tracy Handler, principal at IHS Automotive, said Chrysler likely needs more engines for the additional pickups it will produce in Warren.

The Ram pickup, which went into production in September, can be purchased with a Pentastar V6 engine or a larger V8.

"They really got out ahead of GM and Ford, and are kind of hitting the market at the same time that we are possibly seeing growth in the housing market," Handler said.

The Free Press first reported in June Chrysler's plan to consider adding a third crew at the Warren plant. Chrysler currently employs more than 2,300 workers at the 74-year-old plant.

The Mack Avenue Engine I plant at 4000 St. Jean Ave. in Detroit was purchased by Chrysler in 1953. About 144 employees work there now, making V8 engines for the Ram 1500 pickup.

An adjacent factory, called Mack Avenue II, was idled in September. However, the 200 workers who worked there are eligible to transfer to other plants, including to fill the jobs Chrysler announced today.

In May 2011, Chrysler repaid $9.3 billion to the U.S. and Canadian governments six years earlier than required. That sum does not include the $1.3 billion provided by the Bush administration to the automaker before it filed for bankruptcy.

The Free Press first reported in June Chrysler's plan to consider adding a third crew at the Warren plant. Chrysler currently employs more than 2,300 workers at the 74-year-old plant.

The Mack Avenue Engine I plant at 4000 St. Jean Ave. in Detroit was purchased by Chrysler in 1953. About 144 employees work there now, making V8 engines for the Ram 1500 pickup.

An adjacent factory, called Mack Avenue II, was idled in September. However, the 200 workers who worked there are eligible to transfer to other plants, including to fill the jobs Chrysler will announce today.

Chrysler has recalled or hired about 7,000 hourly workers in the U.S. and Canada since it emerged from Chapter 11 bankruptcy in 2009 with $12.1 billion of emergency funding from the U.S. government.

In May 2011, Chrysler repaid $9.3 billion to the U.S. and Canadian governments six years earlier than required. That sum does not include the $1.3 billion provided by the Bush administration to the automaker before it filed for bankruptcy.

U.S. auto sales have increased 13.8% for the first 10 months this year. Chrysler sales have risen 22.5% in that period.